JERUSALEM – The board of a nonprofit organization on which Sen. Barack Obama served as a paid director alongside a confessed domestic terrorist granted funding to a controversial Arab group that mourns the establishment of Israel as a “catastrophe” and supports intense immigration reform, including providing drivers licenses and education to illegal aliens.

The co-founder of the Arab group in question, Columbia University professor Rashid Khalidi, also has held a fundraiser for Obama. Khalidi is a harsh critic of Israel, has made statements supportive of Palestinian terror and reportedly has worked on behalf of the Palestine Liberation Organization while it was involved in anti-Western terrorism and was labeled by the State Department as a terror group.

In 2001, the Woods Fund, a Chicago-based nonprofit that describes itself as a group helping the disadvantaged, provided a $40,000 grant to the Arab American Action Network, or AAAN, for which Khalidi’s wife, Mona, serves as president. The Fund provided a second grant to the AAAN for $35,000 in 2002.

Obama was a director of the Woods Fund board from 1999 to Dec. 11, 2002, according to the Fund’s website. According to tax filings, Obama received compensation of $6,000 per year for his service in 1999 and 2000.

Obama served on the Wood’s Fund board alongside William C. Ayers, a member of the Weathermen terrorist group which sought to overthrow of the U.S. government and took responsibility for bombing the U.S. Capitol in 1971.

Ayers, who still serves on the Woods Fund board, contributed $200 to Obama’s senatorial campaign fund and has served on panels with Obama at numerous public speaking engagements. Ayers admitted to involvement in the bombings of U.S. governmental buildings in the 1970s. He is a professor at the University of Illinois at Chicago.

The $40,000 grant from Obama’s Woods Fund to the AAAN constituted about a fifth of the Arab group’s reported grants for 2001, according to tax filings obtained by WND. The $35,000 Woods Fund grant in 2002 also constituted about one-fifth of AAAN’s reported grants for that year.

The AAAN, headquartered in the heart of Chicago’s Palestinian immigrant community, describes itself as working to “empower Chicago-area Arab immigrants and Arab Americans through the combined strategies of community organizing, advocacy, education and social services, leadership development, and forging productive relationships with other communities.”

It reportedly has worked on projects with the Illinois Coalition for Immigrant and Refugee Rights, which supports open boarders and education for illegal aliens.

The AAAN in 2005 sent a letter to New Mexico Gov. Bill Richardson in which it called a billboard opposing a North Carolina-New Mexico joint initiative to deny driver’s licenses to illegal aliens a “bigoted attack on Arabs and Muslims.”

Speakers at AAAN dinners and events routinely have taken an anti-Israel line.

The group co-sponsored a Palestinian art exhibit, titled, “The Subject of Palestine,” that featured works related to what some Palestinians call the “Nakba” or “catastrophe” of Israel’s founding in 1948.

According to the widely discredited Nakba narrative, Jews in 1948 forcibly expelled hundreds of thousands – some Palestinians claim over one million – Arabs from their homes and then took over the territory.

Historically, about 600,000 Arabs fled Israel after surrounding Arab countries warned they would destroy the Jewish state in 1948. Some Arabs also were driven out by Jewish forces while they were trying to push back invading Arab armies. At the same time, over 800,000 Jews were expelled or left Arab countries under threat after Israel was founded.

The theme of AAAN’s Nakba art exhibit, held at DePaul University in 2005, was “the compelling and continuing tragedy of Palestinian life … under [Israeli] occupation … home demolition … statelessness … bereavement … martyrdom, and … the heroic struggle for life, for safety, and for freedom.”

AAAN co-founder Rashid Khalidi was reportedly a director of the official PLO press agency WAFA in Beirut from 1976 to 1982, while the PLO committed scores of anti-Western attacks and was labeled by the U.S. as a terror group. Khalidi’s wife, AAAN President Mona Khalidi, was reportedly WAFA’s English translator during that period.

Rashid Khalidi at times has denied working directly for the PLO but Palestinian diplomatic sources in Ramallah told WND he indeed worked on behalf of WAFA. Khalidi also advised the Palestinian delegation to the Madrid Conference in 1991.

During documented speeches and public events, Khalidi has called Israel an “apartheid system in creation” and a destructive “racist” state.

He has multiple times expressed support for Palestinian terror, calling suicide bombings response to “Israeli aggression.” He dedicated his 1986 book, “Under Siege,” to “those who gave their lives … in defense of the cause of Palestine and independence of Lebanon.” Critics assailed the book as excusing Palestinian terrorism.

While the Woods Fund’s contribution to Khalidi’s AAAN might be perceived as a one-time run in with Obama, the presidential hopeful and Khalidi evidence a deeper relationship.

According to a professor at the University of Chicago who said he has known Obama for 12 years, the Democratic presidential hopeful first befriended Khalidi when the two worked together at the university. The professor spoke on condition of anonymity. Khalidi lectured at the University of Chicago until 2003 while Obama taught law there from 1993 until his election to the Senate in 2004.

Khalidi in 2000 held what was described as a successful fundraiser for Obama’s failed bid for a seat in the U.S. House of Representatives, a fact not denied by Khalidi.

Speaking in a joint interview with WND and the John Batchelor Show of New York’s WABC Radio and Los Angeles’ KFI Radio, Khalidi was asked about his 2000 fundraiser for Obama.

“I was just doing my duties as a Chicago resident to help my local politician,” Khalidi stated.

Khalidi said he supports Obama for president “because he is the only candidate who has expressed sympathy for the Palestinian cause.”

Khalidi also lauded Obama for “saying he supports talks with Iran. If the U.S. can talk with the Soviet Union during the Cold War, there is no reason it can’t talk with the Iranians.”

Asked about Obama’s role funding the AAAN, Khalidi claimed he had “never heard of the Woods Fund until it popped up on a bunch of blogs a few months ago.”

He terminated the call when petitioned further about his links with Obama.

Contacted by phone, Mona Khalidi refused to answer WND’s questions about the AAAN’s involvement with Obama.

Obama’s campaign headquarters did not reply to a list of WND questions sent by e-mail to the senator’s press office.

Obama, American terrorist in same circles

Obama served on the board with Ayers, who was a Weathermen leader and has written about his involvement with the group’s bombings of the New York City Police headquarters in 1970, the Capitol in 1971 and the Pentagon in 1972.

“I don’t regret setting bombs. I feel we didn’t do enough,” Ayers told the New York Times in an interview released on Sept. 11, 2001

“Everything was absolutely ideal on the day I bombed the Pentagon,” Ayers wrote in his memoirs, titled “Fugitive Days.” He continued with a disclaimer that he didn’t personally set the bombs, but his group set the explosives and planned the attack.

A $200 campaign contribution is listed on April 2, 2001 by the “Friends of Barack Obama” campaign fund. The two taught appeared speaking together at several public events, including a 1997 University of Chicago panel entitled, “Should a child ever be called a ‘super predator?'” and another panel for the University of Illinois in April 2002, entitled, “Intellectuals: Who Needs Them?”

The charges against Ayers were dropped in 1974 because of prosecutorial misconduct, including illegal surveillance.

Ayers is married to another notorious Weathermen terrorist, Bernardine Dohrn, who has also served on panels with Obama. Dohrn was once on the FBI’s Top 10 Most Wanted List and was described by J. Edgar Hoover as the “most dangerous woman in America.” Ayers and Dohrn raised the son of Weathermen terrorist Kathy Boudin, who was serving a sentence for participating in a 1981 murder and robbery that left 4 people dead.Obama advisor wants talks with terrorists

The revelations about Obama’s relationship with Khalidi follows a recent WND article quoting Israeli security officials who expressed “concern” about Robert Malley, an adviser to Obama who has advocated negotiations with Hamas and providing international assistance to the terrorist group.

Malley, a principal Obama foreign policy adviser, has penned numerous opinion articles, many of them co-written with a former adviser to the late Palestinian Authority President Yasser Arafat, petitioning for dialogue with Hamas and blasting Israel for numerous policies he says harm the Palestinian cause.

Malley also previously penned a well-circulated New York Review of Books piece largely blaming Israel for the collapse of the Israeli-Palestinian negotiations at Camp David in 2000 when Arafat turned down a Palestinian state in the West Bank, Gaza and eastern sections of Jerusalem and instead returned to the Middle East to launch an intifada, or terrorist campaign, against the Jewish state.

Malley’s contentions have been strongly refuted by key participants at Camp David, including President Bill Clinton, then-Israeli Prime Minister Ehud Barak and primary U.S. envoy to the Middle East Dennis Ross, all of whom squarely blamed Arafat’s refusal to make peace for the talks’ failure.

To interview Aaron Klein, contact M. Sliwa Public Relations by e-mail, or call 973-272-2861 or 212-202-4453.